In 2025, Dubai’s real estate market is showing an unusual combination: the rapid price growth of recent years is giving way to a calmer yet steady pace. The average price per square foot in the residential sector has reached 1,683 dirhams, more than double the level recorded five years ago.
Although October posted only a minimal monthly increase — about 0.13% — the market continues its upward trajectory. Analysts note that Dubai is entering a phase of “healthy stabilization”: sharp spikes are being replaced by moderate growth, making the market more predictable and favourable for long-term investment.
Record number of new projects: developers accelerate construction
2025 has been unprecedented in terms of construction volume. In just the first ten months, 532 development projects were launched in Dubai, bringing about 131,500 residential units to the market. Typically, such volumes match a full year, but this time the market reached them much earlier.
In October alone, 65 projects were announced with a combined value exceeding 33.5 billion dirhams, offering more than 14,000 new apartments. Most of these are multi-apartment complexes, which continue to form the core of market supply.
However, growth is also expected in the private homes segment: new villas and townhouses are already planned within major clusters from leading developers. This is particularly important for buyers seeking more privacy and space.
Buyer activity reaches historic highs
Even with rising prices, the market remains exceptionally active. The number of real estate transactions has already surpassed last year’s total and continues to grow steadily. If the trend continues through year-end, total sales could exceed 212,000 transactions — setting a new all-time record for Dubai.
The buyer profile is diverse: local residents and expatriates purchasing homes to live in, alongside international investors seeking stable assets. High demand is driven by the UAE’s economic and political stability, population growth, and attractive residency options, including long-term visas.
What buyers and investors should know
The market’s shift toward more stable growth makes 2025 an appealing time to purchase property. Numerous new projects expand the available choices — particularly in the new-apartment segment — while the gradual slowdown in price increases gives buyers more opportunities to enter the market.
For investors, long-term yield factors are becoming increasingly important: location, infrastructure, rental potential, and developer reputation. The villa and townhouse segment may become a key growth area, especially as the supply of ready homes in central districts continues to shrink.
Dubai continues to strengthen its position as one of the world’s most attractive real estate markets, where high demand, large-scale development, and a stable economy create a favourable environment for both buyers and investors.